Punjab National Bank (PNB) has posted a loss of Rs 940 crore in the first quarter of fiscal 2018-19. Last year, the bank had reported a profit of Rs 343.
Announcing the result of the first quarter, the bank said its total income rose to Rs 15,072 crore from Rs 14,468 crore for the corresponding period last year.
PNB also reported that its non performing assets (NPAs) rose to 18.26 per cent of gross advances.
As far as the $2 billion scam is concerned which is the biggest in Indian banking history, CMD Sunil Mehta said several steps have been taken to recover the amount.
For one, PNB has to now prove to a US court that assets bought by companies and family members of Nirav Modi in the United States were done with funds from the PNB. If that is proved, the bank can be a party to the insolvency proceedings underway in the US.
The bank also stated that at least four overseas branches of the bank, including the one in London, will be shut down. PNB top management had earlier this year admitted to the Central Vigilance Commission that 70 per cent of overseas NPAs were on account of these branches.
PNB also said that software integration between the CBS and SWIFT has taken place. This was cited as one of the main loopholes that allowed the scam to unfold.
A stressed asset vertical with four general managers overseeing 3,000 employees has also been created. The CMD claimed that at least Rs 8,445 has been recovered with this.
The bank, one of the biggest in the country, has pegged its hopes on another Rs 7,000 crore recovery through the NCLT route.
The bank also plans to sell an at least 51 per cent stake in PNB Housing Finance, jointly with private equity firm Carlyle Group LP, to raise funds.
News credit : Indiatoday